Client sells inventory to end customers via distributors who stock product at local locations. Client allows distributor to sell inventory at special lowered prices and claim rebates against Special Pricing Agreements formulated beforehand.
Client has no visibility into inventory position of distributors and rebate calculation is done on current prices, irrespective of the historic prices at which inventory was sold.
We solved this using the following steps
Identified false rebate claims and saw 7% reduction in overall Rebate amount paid out
Improved margin / profitability due to proactive inventory filling measures taken by Sales team